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How To Beat Every Hedge Fund in Just 2 Trades & 4 Hours A Day

Tyler Durden's picture




 

Forget Risk-Parity... ignore volatility-targeting... Risk management is for losers, value-investing is for dummies, and chasing momentum is for suckers... The path to successful trading in the new normal is easy... and involves just 4 simple steps...

Step 1: Put on Pants;

Step 2: Buy S&P 500 Futures at Midnight ET;

Step 3: Sell S&P 500 Futures at 4amET;

Step 4: Go back to bed...

 

 

Probably the most stunning chart we have ever seen - note the red line's performance - minimal drawdown, maximal return...

 

h/t @NanexLLC

 

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Wed, 09/09/2015 - 15:55 | 6528160 quintago
quintago's picture

Or you can just buy some high yielding equities right now which are being overlooked in favor of crappy social media companies, and you can stay in bed with your pants off.

Wed, 09/09/2015 - 15:57 | 6528179 bania
bania's picture

What's the point of Step 1?

Wed, 09/09/2015 - 16:09 | 6528267 Central Bankster
Central Bankster's picture

So, basically short the open, buy the close.  Hire me please.

Wed, 09/09/2015 - 17:11 | 6528604 SofaPapa
SofaPapa's picture

Thank God the market isn't manipulated!

Wed, 09/09/2015 - 16:16 | 6528316 Urban Redneck
Urban Redneck's picture

I sort of took 2004 off, so that I could trade my own book, without pants, over an obscely slow and obscenely high priced satellite connection, from a bunch of amazing resorts and beaches that I realisitcly never would made the time to visit otherwise...

Step 1 (and thus step 4) is optional.

bonus (if you need to hit 0000-0400 EST) - you can adjust your location and timezone so that trading rigged markets doesn't interefere with the freeflowing hookers and booze (mixing them is not wise)... or screw with your sleep.

Wed, 09/09/2015 - 16:33 | 6528409 JenkinsLane
JenkinsLane's picture

Well done for managing to stay off the blow.

Wed, 09/09/2015 - 17:40 | 6528728 weburke
weburke's picture

haha, thanks for that.
will this work after ww3 starts this weekend?

Wed, 09/09/2015 - 17:17 | 6528625 Hal n back
Hal n back's picture

Hawaii put on the trade before dinner, close it after dinner and go to bed--golf all day.

 

even better get someone to write you an algo and do what they have to do to let the  thing run automatically. then do it from anywhere.

 

oops, thats already being done by the 2 and 20.

 

 

 

Wed, 09/09/2015 - 17:31 | 6528696 Slomotrainwreck
Slomotrainwreck's picture

Step 4 is actually "Take off Pants" or else step 1 never happens again.

Wed, 09/09/2015 - 19:31 | 6529138 Nanur
Nanur's picture

You must be a software engineer.  I spotted that logic bug too

Wed, 09/09/2015 - 16:53 | 6528515 Grinder74
Grinder74's picture

So that your woman is required to exercise step 4 when you get back into bed...unless you're that Jeffrey Talpins of Element Capital in which case you want to lock those pants so that thing doesn't try any funky stuff.

Wed, 09/09/2015 - 17:17 | 6528634 Sanity Bear
Sanity Bear's picture

that's just to check if the Underpants Gnomes are front-running you that day

Wed, 09/09/2015 - 15:59 | 6528183 Bananamerican
Bananamerican's picture

"Or you can just buy some high yielding equities"

  as an inveterate non-investor may I ask.....like what?

 

Wed, 09/09/2015 - 16:23 | 6528360 quintago
quintago's picture

HCP, PM, GSK, SO, PPL, SE, MAT, BMR ... and on and on...

Wed, 09/09/2015 - 18:14 | 6528851 Bananamerican
Bananamerican's picture

before or after the next washout...isn't the cat still bouncing?

Wed, 09/09/2015 - 16:54 | 6528521 Grinder74
Grinder74's picture

Can ZH provide a TradeStation strategy report for this?  I need to see the average win/loss ratio...wait is this from Gartman's newsletter?

Wed, 09/09/2015 - 15:56 | 6528165 Dragon HAwk
Dragon HAwk's picture

If it was that simple a Computer could do it....

  pants part might be a little tough  though

 

Wed, 09/09/2015 - 16:58 | 6528538 angel_of_joy
angel_of_joy's picture

That's how they filter out machine trades... /s

Wed, 09/09/2015 - 15:55 | 6528167 Zirpedge
Zirpedge's picture

If you moved half way around the world, you could wake up at 10am and finish work by lunch.

Wed, 09/09/2015 - 15:56 | 6528173 Tsar Pointless
Tsar Pointless's picture

I"m usually up at midnight still, and wake up around 4 o'clock to go pee. So, I could do this...

Wed, 09/09/2015 - 15:57 | 6528178 froze25
froze25's picture

I'm in.

Wed, 09/09/2015 - 16:00 | 6528187 Bryan
Bryan's picture

Oh great, thanks for giving away the secret formula for FREE.  :-(  I suppose next you're going to tell us the BTFD strategy.  Ooops, did I say that out loud?

Wed, 09/09/2015 - 15:59 | 6528188 nagan
nagan's picture

Yeah its easy to make money in a bull market.

Wed, 09/09/2015 - 15:59 | 6528195 I AM SULLY
I AM SULLY's picture

Everyone knows my device will revolutionize trading on Wall Street ...

(it might introduce temporal noise)

(and cause the universe to collapse)

(but Goldman-Sachs will fund it)

(they don't give a shit)

http://iamsully.com/?p=5865

Wed, 09/09/2015 - 16:19 | 6528343 Dragon HAwk
Dragon HAwk's picture

a little investor cash and an IPO. bit of marketing, and your rich. doesn't haveto work man,  just has to sound real good, and it does. write the book man..

Wed, 09/09/2015 - 18:28 | 6528924 cheech_wizard
cheech_wizard's picture

Should have written the book. Too late now though...

The Peripheral by William Gibson
Wed, 09/09/2015 - 16:00 | 6528205 Amish Hacker
Amish Hacker's picture

Or own gold only when the European markets are open and the US "markets" are closed.

Wed, 09/09/2015 - 16:20 | 6528329 JustObserving
JustObserving's picture

Congratulations - you win this contest hands down.  This strategy has worked for years if not decades.

Buy gold when US markets open and sell after they close

Wed, 09/09/2015 - 16:02 | 6528219 I AM SULLY
I AM SULLY's picture

I need to get hammered tonight.

Wed, 09/09/2015 - 16:04 | 6528230 The Merovingian
The Merovingian's picture

#timezonesmatter

Wed, 09/09/2015 - 16:07 | 6528247 buzzsaw99
buzzsaw99's picture

i get up at 4 a.m. but staying awake until midnight is a non starter

Wed, 09/09/2015 - 16:07 | 6528251 bnbdnb
bnbdnb's picture

Why not just say be the BOJ?

Wed, 09/09/2015 - 16:08 | 6528255 Slurm
Slurm's picture

The last time the 'Entire Day' caught '12am-4am', was just before Lehman.  Which is where it's now back to.

Wed, 09/09/2015 - 16:19 | 6528344 Collapsed
Collapsed's picture

Good observation.

Wed, 09/09/2015 - 16:10 | 6528273 AbbeBrel
AbbeBrel's picture

Is there an ETF for this?? The daily NAV would be pretty easy to calculate, so the operating cost would be cheap and could be run by trained monkeys...

Wed, 09/09/2015 - 16:10 | 6528277 Yen Cross
Yen Cross's picture

  Step1: Sit up in bed and open laptop lid.

Wed, 09/09/2015 - 16:56 | 6528532 Grinder74
Grinder74's picture

You mean you don't have a tablet embedded into your thigh?

Wed, 09/09/2015 - 16:17 | 6528323 The Indelicate ...
The Indelicate Genius's picture

That's some nice work, Tylers.

Wed, 09/09/2015 - 16:23 | 6528359 fed_depression
fed_depression's picture

This is because it would be where most gov't futures would be bought to get the maximum bang for the buck.

Wed, 09/09/2015 - 16:25 | 6528371 doggis
doggis's picture

GREAT!!......YOU JUST MADE LARRY FINK VERY VERY ANGRY!! THERE GOES BLACKROCK'S SECRET TO THE ULTIMATE IN MARKET MANIPULATION!!!

Wed, 09/09/2015 - 16:28 | 6528388 libertyBull
libertyBull's picture

Very low liquidity during that middle-of-the-night period

Wed, 09/09/2015 - 16:41 | 6528451 bentaxle
bentaxle's picture

Hey! i sleep in the basement below ma & pa, you sure 3 is legal?

Wed, 09/09/2015 - 16:53 | 6528517 playdoh
playdoh's picture

As evidenced by the chart, this year has been one for the 4pm - midnight long trade.

Essentially though, this is smart money stop hunting shorts and forced covering employing limited capital 

Nice work if you can get it.

Wed, 09/09/2015 - 17:15 | 6528629 smithmorra
smithmorra's picture

Jerk off to porn 4+ hours a day, helps you keep focussed on what really matters; go back to bed wake up to porn as you can't afford the real thing.  Get a disability check, play scratch off tickets, watch Maury Povich and Jerry Springer and think how fortunate you are to not be their losers.....

Wed, 09/09/2015 - 17:21 | 6528651 bankonzhongguo
bankonzhongguo's picture

Step one is optional.

Wed, 09/09/2015 - 18:36 | 6528956 hooligan2009
hooligan2009's picture

given that there was a 1-4 pm bias in the early years prior to the GFC followed by a 12 to 4 am post the crash, it ought to be easy enough to track down the individuals responsible for market ramps.

ps. why not extend the analogy to a long/short portfolio over time periods and short the green and orange lines. you will then be able to name the big swinging dick round tripping day traders who rip everyones face off. i dont think eccles cakes would mind.

Wed, 09/09/2015 - 18:58 | 6529047 binomial
binomial's picture

I can never get past step one!

Wed, 09/09/2015 - 19:31 | 6529139 Onlygold1
Onlygold1's picture

awe it's easier than that, just fade cramer and gartman, it's a win win

Wed, 09/09/2015 - 20:37 | 6529310 SweetDoug
SweetDoug's picture

'

'

'

So the question is "Who's driving this market?" Gotta be buyer's and sellerz.

 

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